SWIFT has released the June 2019 special edition of its RMB Tracker, which studies the latest trends that are influencing the rate of RMB growth in China and globally.
The rising global influence of the RMB is due to China’s re-emergence as an economic superpower. This is summed up across four trends:
1. The shift of China’s economy to consumption and services
2. The emergence of the ‘new economy’
3. The rise of the middle class
4. The liberalisation of China’s current and capital accounts
๐ For example, Hungary, Turkey and Uzbekistan saw increases of 242%, 35% and 170% respectively during this period.
๐ In Southeast Asia, Singapore has experienced payment traffic growth with China of 231%. Similarly, Vietnam has experienced 301% in payment traffic growth with China.
The RMB tracker also carries a contribution from the Official Monetary and Financial Institutions Forum (OMFIF). Adam Cotter, Head of Asia and Chief Representative of OMFIF Singapore, mentions the advantages of adopting the RMB but notes that the RMB system is still insufficient for global adoption.
Re-disseminated by The Asian Banker